McGRIGORS has advised on a £35million PFI project to build a new community hospital and health centre in St Andrews.

The law firm acted on behalf of Dexia Credit Local which is funding the consortium who won the Fife Health Board contract.

The hospital will include three GP practices, a 40-bed diagnostic and treatment centre, specialist palliative care and a day surgery unit. Work will begin this month and is expected to be completed by summer 2009.

Stephen Tobin, a partner in the McGrigors project finance team, who advised on the deal, said: "PPP and PFI contracts ensure that essential infrastructure projects such as hospitals and schools are constructed quickly and efficiently for local communities.

"This deal further strengthens McGrigors' position as a provider of quality and informed advice on contracts of this nature, and we are delighted to be involved in a deal that will bring vital and modern services to St Andrews."